Financial Management

Cash Conversion Cycle Analysis

Assignment 

The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it. 

Assignment Steps 

Use a multinational company from the AUTOMOTIVE industries: 

Review the selected company's most recent financial statements. 

Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:

Average Inventory

Inventory Turnover Rate

Average Account Receivable

Account receivable turnover

Average collection cycle

Explain in 700 words the importance of the cash conversion cycle, including: 

Discuss the purpose of the cash conversion cycle and  its components.

Analyze the results obtained in the cash conversion cycle equations.

Propose strategies to increase the cash flows of the company under study.

Format your paper consistent with APA guidelines.